My Overall Financial Plan is Very Simple Indeed.
A. Trade in the biggest financial market in the world... ForEx.
B. Buy Tax-Liens in the 10 States that offer the highest rates.
C. Lend money to others at more than 10 times the average rate that bank pays on savings and CD's in the form of Private Mortgages.
"Why am I not investing in stocks, bonds, etc like everyone else?"
Because I don't believe in them. You don't have enough control (unless you have a say in how the business is run like Warren Buffett has in his investments). And I also learn one doesn't get rich by doing what the masses does (if the masses is doing it... it's too late to profit from it)... PLUS I heard (from rich people I know) that they don't invest unless they earn 20% or more on their money.
So after pondering those facts I came up with the following Simple Financial Plan.
ForEx Trading: (short Term)
I plan to invest about 15% of my portfolio in this and then double it each month starting NOW.
I plan to invest about 15% of my portfolio in this and then double it each month starting NOW.
With ForEx I have a lot of control (not all control) that I'm comfortable with. I can start with as little as $10.00. I can do it for as little as 2 hours a day 5 days a week. It's easy to learn, And I know people who have had consistent positive results with it. Risk to profit ratio is excellent.
So far I tried 3 trading sites. ForEx.com (a company based in USA): I saw an ad on TV and signed up for their FREE trial account in December 2007 but never used it. They had a live introductory Seminar in Miami Florida in February 2008 and invited me to it. I learned so much at that Seminar that I immediately started using my practice account I had with them. Then I deposited the minimum $250.00 required to start a live Mini Account after 2 weeks of practicing. I made some money, lost some money and invested another $250.00 and lost all but $75.00 in a total of 3 weeks.
Well at the live Seminar they told me I needed at least $2,000.00 to make a decent go at it but I didn't listen. So I lost it all on a very long 300 pips (or so) move that went opposite my trade. If I had traded the opposite way I would have made $300.00 in less than 1 hour.
So after that I searched for a ForEx site that would let me trade with a Micro Account with a minimum of $10.00 and found several. I tried 2 and settled on one with a cool trading platform called PFGfxLite.com (a company based in Europe) I deposited $20.00 and made $60.00 in 3 weeks and came upon some trouble and tried several times to deposit another $30.00 but it didn't go through (because I couldn't remember how I typed in my name, address, etc to match my credit card on the site deposit form/application and they didn't take my PayPal payment) so I abandoned that account.
Non-the-less I won't stop until I find a ForEx trading platform I'm comfortable with. I bought a book entitled "Currency Trading for Dummies" by Mike Gallant and Brian Dollan (both from ForEx.com), signed up for a local upcoming course for $75.00, and plan to take an online course (or two) for a total of about $60.00 or so on the subject in the very near future and will keep you up to date on what happens.
Tax Liens: (Medium Term)
I plan to invest about 5% of my portfolio in this in 2010 and earn at least 15% each year.
I plan to invest about 5% of my portfolio in this in 2010 and earn at least 15% each year.
I have quite a bit of control. It seems simple and predictable with great risk to gains ratio. I need a minimum of $5,000.00 to invest and a lot more knowledge to get started.
I read a book on Tax Liens in the late 1990's or so. It was a major eye opener but I didn't do anything with the knowledge then. I recently watched an infomercial on the subject and realized that it evolved into a science and was even more intrigued. So I went to a FREE live Seminar on the subject the first chance I got and I researched it locally and learned that anyone can buy Tax Liens here in Florida if you buy the book of all available listings from the State for about $25.00 and deposit a minimum of $5,000.00 to be able to bid online on whatever interests you. This auction happens just once a year here in Florida if I remember correctly.
Yes they are pros and cons but the rules seems to be spelled out clearly by the governing government agency as to what to do and when. And I hear one shouldn't buy land because of upkeep, or commercial property because of associated problems. But I plan to give it a try if not next year (2009), surely in 2010.
In the meantime I plan to learn more about the 10 most profitable states that offer high interest Tax Liens as I hear you can earn a guaranteed 10% - 18% and sometimes as high as 24% with very little risk each year.
Private Mortgages (Notes, Paper): (Short and Long Term)
I plan to invest about 30% of my portfolio in this NOW and in 5 years, and earn at least 10% compounded interest each year.
I plan to invest about 30% of my portfolio in this NOW and in 5 years, and earn at least 10% compounded interest each year.
I can start NOW with $50.00, later with $20,000.00 (ideal $50,000.00). Risk to profit ratio is superb. I have total control. It's totally predictable. It's really easy to learn and execute.
I was introduced to this in the 1990's with Ernie Kessler, Larry Pino, etc and even spent $500.00 on a course on the subject back then. With Paper, I control most variables at all times. It's very liquid and if structured and done correctly this I believe is the most profitable way to have your money work for you. Remember Mortgages isn't simple interest... it's compounded interest and what's even better is you can profit GREATLY from Real Estate (the very best form of investment in my opinion) without owning it.
What I really intend to do eventually is buy property then sell it and do seller financing for quick sale (especially in this down market). But also I recently heard about a web site that lets anyone lend a minimum for $50 to others at attractive interest rates called Prosper.com. I will research this web site and if it is good enough then I can start on this road NOW on a small scale, and then do it on a large scale in 5 years or so.
The above only accounts for 50% of my investments the rest is in Businesses I am starting up and intend to buy, The Internet (web sites) and Real Estate (wholesaling and Investments).
Well what about 401k and other popular retirement methods and instruments?
I really don't know much about them and I really don't have any interest to invest the time to learn about them either. I currently have a part-time job that doesn't offer any such thing. I'll be 41 in August 2008 with no real savings for retirement so I have no room for error and would rather have total control (or as much as possible) over what little savings I have to parley into a cozy retirement fund.
Hey I'm not telling you what to do... I'm just sharing my plans; what I am doing and intend to do... but I would really love to get feed back from you if you are doing something different too.
Will write again soon,
S. A. Williams AKA sawnet [your RPM Millionaire]
http://www.RPMwealthClub.com
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